Downstreaming the MIND ID Group, Transforming the Mining Sector

Indonesian Mining Industry Holding (MIND ID) has succeeded in operating and recording significant progress on a number of strategic downstream projects throughout 2025. This achievement not only has a positive impact on strengthening the company’s business performance, but is also a driver of the transformation of the national mining business model towards an added value-based industry.

Executive Director of Indonesia Mining and Energy Watch (ISEW), Ferdy Hasiman, assesses that MIND ID is on the right track in transforming its business from just extractive mining activities to an integrated industrial ecosystem.

According to him, throughout 2025 MIND ID has shown significant progressive steps in leaving the old paradigm of the mining sector.

“In 2025, MIND ID has shown very significant progressive steps. They are starting to abandon the old pattern of extractive mining and appear as the front guard in reducing the balance of payments deficit through the downstreaming of various mineral commodities,” said Ferdy, Monday (29/12/2025).

Ferdy highlighted the Smelter Grade Alumina Refinery (SGAR) project in Mempawah as a game changer for the MIND ID Group’s performance. Through the integration of bauxite downstream from upstream to downstream, the project carried out by PT Borneo Alumina Indonesia (BAI) is able to meet domestic alumina needs which have so far been dependent on imported supplies.

The operation of SGAR is considered to significantly increase national alumina production capacity. This achievement not only contributes to import substitution, but also strengthens the cost structure and guarantees guaranteed supply of raw materials for national strategic industries, including automotive and petrochemicals.

Apart from that, Ferdy assesses that the involvement of MIND ID Group members, namely PT Aneka Tambang Tbk and PT Vale Indonesia Tbk, in developing the electric vehicle (EV) battery ecosystem is an important milestone in the transformation of the mining sector.

Antam’s investment with Indonesia Battery Corporation (IBC), as well as the progress of the HPAL project in Pomalaa which has reached 41.72 percent, are the main catalysts for accelerating strategic mineral-based industrialization.

With an increasingly solid project foundation, Ferdy believes that MIND ID is preparing to move towards global company status with a greater contribution to the world economy. According to him, MIND ID has the potential to become a key player in integrated mineral downstreaming from upstream to downstream, as well as a role model for the mining industry in the regional area.

However, in the midst of a positive performance, Ferdy reminded the importance of balanced government policy support. He believes that fiscal policy needs to be designed carefully so as not to burden the margins of industries that are investing heavily in downstream projects.

“The government must not only give orders, but must also have a clear industrial design. Don’t let MIND ID smelter products stop being intermediate products. Downstreaming must continue to manufacturing industries such as stainless steel or automotive components so that the multiplier effect really doubles,” concluded Ferdy.

This article also appeared on VRTimes